What is disability insurance?

It is income paid to you weekly or monthly when you can’t work because of sickness or injury. The pay out provided may be stated as a percentage of income or as a set dollar amount. The policy defines how much you will be paid, how soon after you are disabled payments appear in your mailbox, and when they will cease. Benefits periods may depend on whether the disability was caused by an accident or illness. The longer the benefit period, the higher the premium will be.

There many different kinds of disability contracts. Some plans are available from your employer through its group health package and from private insurers. There are also various public sector programs including Social Security and some State Disability Insurance programs. Veterans, members of the armed forces, federal civil servants and coal miners are also covered by federally-sponsored programs.

Injuries or sickness as a result of your employment may also be covered by worker’s compensation.